Hamblen County board approves $343,200 industrial audit to pursue $5 million energy-efficiency loan

The Hamblen County Board of Education voted unanimously to pay $343,200 for an industrial-grade energy audit that district leaders say is necessary to apply for state loan funding to finance energy-efficiency upgrades.

"The loan that we're requesting from the state is for $5,000,000 at 1.5% interest over a 16 year payout," the director said during his report, adding that the district expects guaranteed savings from the work. He characterized the audit as the next step and said the district would ask the board to commit funding for the audit "if needed." The director also said that if the district receives the loan, the audit cost could be rolled into it.

Why it matters: district leaders say the measure would let the schools invest in energy upgrades now and pay back the loan from guaranteed energy savings. In the director's presentation, an initial conservative estimate projected the district would generate more than $2.5 million in net savings by the 16-year mark, above the cost of repayment.

What the board did: after brief discussion and the customary motions and seconds, the board approved the audit funding unanimously. Board members also previously approved a related motion to pursue technology and capital updates that the administration said would be coordinated with the energy work where appropriate.

What remains: the audit must be completed to finalize the loan application. If the state loan is awarded, the superintendent said the district will roll audit costs into the loan rather than using general operating funds. The board did not set a public timeline beyond saying staff hopes to begin activities in schools in September if feasible.

Speakers quoted or referenced in this article are listed in meeting records and the transcript.